@theMarket: Markets Falter to Start the Yearby Bill Schmick,
02:09PM / Friday, January 03, 2025 | |
After several days of profit-taking, stocks tried to stage a recovery in the first two days of the new year with varying success. Traders are cautious and fear that there may be more downside to come.
While Santa made at best a brief appearance this year as far as the expected rally was concerned, the damage was not all that great. The S&P 500 Index suffered a loss of less than 3 percent from its all-time high while NASDAQ was hit harder.
The dollar and bond yields continued to climb as foreign currencies fell against the dollar in preparation for the incoming administration's expected new tariff regime. Most overseas markets vastly underperformed 0 Comments
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The Retired Investor: IRS Incentive Boosts for Savers Not Nearly EnoughBy Bill Schmick,
04:25PM / Thursday, January 02, 2025 | |
Saving for retirement will get a little more attractive next year. Given the dire state of savings in this country, anything that convinces workers they need to save more will be beneficial.
The Secure Act 2.0, enacted in 2022, ushered in several additional improvements in retirement savings, including even higher 401(k) plan catch-up contributions. The object was to make it easier for older American workers facing a retirement savings shortfall to set aside more money quickly.
The facts are that there is a widespread retirement savings shortfall in the U.S. that spans generations. Sixty-five percent of Baby Boomers (age 55-64) have less than $25,000 0 Comments
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@theMarket: Wall Street Sees Another Positive Year AheadBy Bill Schmick,
04:11PM / Friday, December 27, 2024 | |
It is a time when financial strategists and economic experts forecast what will happen in the coming year. Since most of Wall Street is trying to sell you something, prepare for a positive outlook from most firms.
On practically the same date last year, I wrote that strategists were predicting the 2024 S&P 500 Index targets ranged from 4,200 to 5,500. Given that over a long period, the S&P 500 has delivered around 10.13 percent yearly returns since 1957, and 9.19 percent over the last 150 years, forecasts that mimic those returns should be ignored.
Those forecasts told me the authors had no idea where the market was going. As such, they just 0 Comments
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The Retired Investor: The Billionaire Trump teamBy Bill Schmick,
04:15PM / Thursday, December 26, 2024 | |
Last week, billionaire Stephen Feinberg of the private equity firm Cerberus Capital Management was selected to fill the No. 2 spot at the Defense Department. That brings the number of billionaires who have agreed to join Donald Trump's second term to an even dozen. Should you be worried?
The wealth and business background of these individuals have sparked concerns that the next four years will favor business interests and those of the wealthy above all else. If we include Trump, Elon Musk, and Vivek Ramaswamy, the total thus far would be 15. At last count, U.S. News and World Report estimated that the total net worth of these billionaires as of Dec. 10 was more than 0 Comments
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@theMarket: Fed Backs Away from More Interest Rate CutsBy Bill Schmick,
10:45AM / Saturday, December 21, 2024 | |
The Federal Open Market Committee cut interest rates again on Wednesday and reduced the number of interest rate cuts next year. That decision dismayed investors and triggered a run for the exits in the stock market. Will this government Grinch decision ruin the chances of a Santa Claus rally?
Wall Street labeled the central bank move a "hawkish cut." Prior to the meeting, most investors were expecting that the Fed would pause after this month's rate cut of 25 basis points. Given that events unfolded as expected, why did the Dow lose over 1,000 points in two hours?
Inflation is the short answer. You may recall in last week's column I 0 Comments
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